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The Hershey Company engages in the production, marketing, sale, and distribution of chocolate and sugar confectionery products worldwide. The company offers its products under approximately 80 brand names.
Segments
The company operates in two segments, North America, and International and Other.
North America - This segment is responsible for its chocolate and sugar confectionery market position in the United States and Canada. This includes developing and growing its business in chocolate, sugar confectionery, refreshment, snack, pantry and food service product lines.
International and Other - This segment includes all other countries where the company manufactures, imports, markets, sells or distributes chocolate, sugar confectionery and other products. This includes the company’s operations in Asia, Latin America, Europe, Africa and the Middle East, along with exports to these regions. This segment also includes its retail operations, including Hershey’s Chocolate World stores in Hershey, Pennsylvania, New York City, Chicago, Las Vegas, Shanghai, Niagara Falls (Ontario), Dubai and Singapore, as well as operations associated with licensing the use of certain trademarks and products to third parties worldwide. The company also focuses on growth within its three strategic business units: Chocolate, Sweets and Refreshments, and Snacks and Adjacencies.
Products
The company’s principal confectionery offerings include chocolate and sugar confectionery products; gum and mint refreshment products; pantry items, such as baking ingredients, toppings and beverages; and snack items, such as spreads.
Within the North America markets, its product portfolio includes chocolate offerings marketed and sold under the brands of Hershey’s, Reese’s, and Kisses, along with other chocolate and sugar confectionery brands, such as Jolly Rancher, Almond Joy, Brookside, Good & Plenty, Heath, Kit Kat, Lancaster, Payday, Rolo, Twizzlers, Whoppers and York. The company also offers premium chocolate products, primarily in the U.S., through the Scharffen Berger and Dagoba brands.
The company’s refreshment products include Ice Breakers mints and chewing gum, Breathsavers mints, and Bubble Yum bubble gum. The company’s pantry and snack items that are principally sold in North America include baking products and toppings, as well as sundae syrups sold under the Hershey’s, Reese’s and Heath brands, as well as its family of Hershey’s and Reese’s chocolate spreads.
Within the International and Other markets, the company manufactures, markets, and sells these same brands, as well as other brands that are marketed regionally, such as Golden Monkey confectionery and snack products in China, Pelon Pelo Rico confectionery products in Mexico, IO-IO snack products in Brazil, and Nutrine and Maha Lacto confectionery products and Jumpin and Sofit beverage products in India.
Customers
The company’s customers are mainly wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires and department stores. In 2014, approximately 25% of the company’s consolidated net sales were made to McLane Company, Inc.
Seasonality
The company’s sales are higher during the third and fourth quarters of the year, representing seasonal and holiday-related sales patterns.
Acquisitions
In 2014, the company acquired 80% of the outstanding shares of Shanghai Golden Monkey Food Joint Stock Co., Ltd. (SGM), a confectionery company based in Shanghai, China. SGM operates through six production facilities located in China, and the Golden Monkey product line is primarily sold through traditional trade channels.
In 2014, the company also acquired all of the outstanding shares of The Allan Candy Company Limited (Allan) headquartered in Ontario, Canada and a controlling interest in Lotte Shanghai Food Company, a joint venture established in China for the purpose of manufacturing and selling product to the joint venture partners.
Research and Development
The company engages in various research and development activities in countries, including the United States, Mexico, Brazil, India and China.
Regulations
In the United States, the company’s activities are subject to regulation by various government agencies, including the Food and Drug Administration, the Department of Agriculture, the Federal Trade Commission, the Department of Commerce and the Environmental Protection Agency, as well as various state and local agencies.
History
The Hershey Company was founded in 1894.

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